TaxTMI 
TaxTMI 
2026 (10) TMI 596
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....d disproportionate, and deserves to be set aside, for the reasons stated hereinafter. 2. That it is candidly and fairly submitted that the observations and findings recorded by the CIT(Exemption) namely, that the Appellant's provisional registration was obtained under Item (A) instead of the correct Item (B) of sub-clause (vi) of clause (ac) of subsection (1) of Section 12A, and that this was because the Appellant's activities had already commenced prior to the date of the Form 10A application dated 15.04.2024 are factually true and correct, and are not disputed by the Appellant. 3. That it is equally candidly submitted that the Appellant's claim of exemption under Section 11 of the Act for AY 2022-23 and AY 2023-24, made without holding a valid and subsisting registration under Section 12A/12AA for those years, is also correctly noticed by the Department, and is not disputed. 4. That the aforesaid lapses, though factually correct as found by the CIT(Exemption), were wholly inadvertent and bona fide, and occurred solely on account of the Trustees' lack of technical/legal knowledge of the registration regime introduced with effect from 01.0....
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....oning a technical/timeline lapse in an application for registration/approval, following the ratio of the Hon'ble Delhi High Court in DCIT(Exemption) v. Vishwa Jagriti Mission [(2013) 30 taxmann.com 41 (Delhi)], to the effect that sufficiency of cause for condoning such lapses ought to be liberally construed in favour of genuine charitable institutions. 9. That, in the premises, and without seeking to disturb any of the factual findings recorded by the CIT(Exemption) all of which are accepted as correct the Appellant humbly submits that the ends of justice would be served if the impugned order is set aside, the admitted and bona fide lapses are condoned, and the Appellant is granted a fresh opportunity to apply for registration under the correct and applicable clause, namely Section 12A(1)(ac)(vi)-Item (B), without such fresh application being treated as barred by limitation or otherwise prejudiced by the errors made in the earlier applications. 10. That the Appellant craves leave to add, alter, amend, modify, substitute, or withdraw any of the foregoing grounds of appeal at or before the hearing." 3. The assessee has raised the following grounds of appeal i....
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....ning. medical assistance, social welfare and environmental activities; and (iv) the Appellant's full and candid cooperation throughout the present proceedings. 6. That the Appellant's bona fides are further demonstrated by its reply dated 17.06.2026, wherein, far from disputing or concealing the position, the Appellant itself candidly accepted that its activities had commenced prior to the grant of provisional approval, and specifically requested the CIT(E) to treat and examine the application under the correct provision, namely section 80G(5)(iv)(B). 7. That the CIT(E), in the notice dated 12.06.2026, had himself expressly recorded that "the application shall not be approved unless the application is to be treated in 80G(5)(iv)(B)" thereby acknowledging in terms that the appropriate and lawful course was to treat and examine the application under the correct clause, and not to reject it outright. Having so recorded, and despite the Appellant's express request to the same effect, the CIT(E) erred in failing to treat the application under section 80G(5)(iv)(B) as indicated by him, and instead rejected the application altogether on the distinct ground of....
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....(1)(ac)(vi) and for approval under section 80G(5) under the correct and applicable clause, namely Item (B) in each case, condoning the inadvertent and bona fide error committed by the Appellant in the original selection of clause, and to decide the said applications afresh, on merits, in accordance with law, after affording the Appellant a fair and effective opportunity of being heard. 12. That, in the alternative and without prejudice to the foregoing, the Appellant prays that it be permitted to file fresh applications for registration under section 12A(1)(ac) (vi) [Item (B)] and for approval under section 80G(5) [Item (B) of clause (iv) of the first proviso], as may be necessary, without such fresh applications being adversely affected or barred by limitation, having regard to the fact that the earlier applications/registrations were vitiated only by an inadvertent and bona fide error in the selection of the applicable clause, and not by any lack of diligence, mala fide, or absence of genuine charitable activity on the part of the Appellant. 13. That the Appellant craves leave to add, alter, amend, modify, substitute, or withdraw any of the foregoing grounds of ....